UnitedHealth eyes Aetna for takeover bid
UnitedHealth Group has approached Aetna with a potential takeover deal worth more than $40 billion. The Wall Street Journal reports that the approach is in its early stages and Aetna’s response to the approach is not known. UnitedHealth, with a market value of $110 billion, has also recently approached Cigna with a $45 billion offer which was rejected. Aetna is one of the suitors for Humana.
Buffett takes stake in Australian insurer
Warren Buffett’s
Berkshire Hathaway is to buy a $388 million stake in Australian insurance firm IAG. The deal will give Berkshire 20 per cent of the firm’s premiums over ten years; it will also be liable for claims during that time. Insurance Australia Group has been hit by increased claims from natural disasters including the Brisbane hailstorm last year and this deal will reduce its exposure.
Global program gives boost to insurance start-ups
A new program has launched which gives insurance start-ups a range of support for innovation in the industry. The global insurance accelerator program is being offered by Startupbootcamp Europe but is open to fledgling insurers from across the world and is supported by the insurance industry in multiple countries.
Nektarios Liolios, co-founder of Startupbootcamp Insurance, said: “The insurance industry is calling out for innovation and there are hundreds of startups out there waiting to be discovered, and we want to nurture that untapped talent!”
The program will provide funding, mentorship, office space and access to a network of industry partners, investors and venture capital firms for up to 10 selected global insurance startups.
Lloyds warns of risk in global food system
The vulnerability of the overstretched global food system to sudden shocks, and the wide repercussions for communities, businesses and governments is highlighted in a new report from Lloyd’s insurance market. The scenario, produced in conjunction with UK and US academics, shows the far-reaching economic and humanitarian consequences that disruptions such as weather catastrophes or plant pandemics – many of which are exacerbated by climate change – could have on the global economy. It could mean 400 per cent increases in costs of crops such as wheat, maize, soya bean and rice and 5 per cent wiped off the value of US companies.
Lloyd’s Tom Bolt said: “Traditionally insurers look only at the financial and physical impact of catastrophes. But in today’s interconnected world, these events can have complex and far-reaching economic and humanitarian implications. The insurance industry has a key role to play in improving the resilience of communities, businesses and governments. Our role is not only to ensure that our ability to pay claims helps them to recover quickly from these events, but to ensure they have a greater awareness of the complex risks they face in a globalised world.”
